Fantasy Claw Arcade franchise unit economics
Fantasy Claw Arcade franchisees run claw machine arcades in shopping centers and malls that sell plays on claw machines and arcade games for prizes.
Fantasy Claw Arcade franchise at a glance
The 2026 FDD reports a 2025 profit and loss statement for two arcades owned by the franchisor’s affiliates in Las Vegas: Fashion Show sold $1,137,751 and kept 25.6% as EBITDA, and Planet Hollywood, open from 9 May 2025, sold $404,472 and kept 10.6%. No franchised arcade was open at the end of 2025.
Fantasy Claw Arcade’s affiliate-owned Fashion Show arcade in Las Vegas sold $1,137,751 in 2025, with no franchised arcades open, according to Item 19 of Fantasy Claw Arcade’s 2026 FDD, issued 26 March 2026. Fees paid to Fantasy Claw Arcade come to about 9.14%* of sales. A Fantasy Claw Arcade franchise costs $292,050 to $514,950 to open.
- A Fantasy Claw Arcade franchise costs $292,050 to $514,950 to open, including a $40,000 initial franchise fee and a $10,000 development services fee, according to the brand’s 2026 FDD.
- Fantasy Claw Arcade charges a 7% royalty to an owner of one or two arcades and 6% under a development agreement for three or more, plus a marketing fund of currently 2% of gross sales.
- Fantasy Claw Arcade’s affiliate-owned Fashion Show arcade in Las Vegas sold $1,137,751 in 2025 and reported EBITDA of $291,189, 25.6% of sales.
- Fantasy Claw Arcade’s Planet Hollywood arcade, open from 9 May 2025, sold $404,472 and reported EBITDA of $43,025, 10.6% of sales.
- Fantasy Claw Arcade’s profit and loss figures apply a 6% royalty; at the 7% single-arcade rate, Fashion Show’s EBITDA would be $279,811*.
- Fantasy Claw Arcade had four company-owned arcades and no franchised arcades at the end of 2025, and three franchise agreements signed in Ohio but not yet open.
These figures come from Fantasy Claw Arcade's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The $279,811 EBITDA at a 7% royalty is an Averan calculation.
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Talk to Averan → Averan Fantasy Claw Arcade Conversion Package →- Fashion Show sold $1,137,751 in 2025 and kept $291,189 as EBITDA, 25.6% of sales. It is the arcade in Item 19 that was open for the whole year. The figures are unaudited and come from an arcade owned by the franchisor’s affiliates.
- Planet Hollywood sold $404,472 from its 9 May 2025 opening and kept $43,025, 10.6% of sales. Its sales were 35.6% of Fashion Show’s* over 237 days* of the year. Item 19 does not give a full-year figure for it.
- Rent was 9.6% of sales at Fashion Show and 24.4% at Planet Hollywood. The rent gap is 14.78 points of sales and the EBITDA gap is 14.96 points*. Cost of goods was 26.1% and 21.3%, and payroll 20.0% and 21.7%.
- The profit and loss statement applies a 6% royalty, the rate for a developer of three or more arcades. An owner of one or two arcades pays 7%. One more point of sales takes Fashion Show’s EBITDA to $279,811, 24.6%*, and Planet Hollywood’s to $38,980, 9.6%*.
- No franchised Fantasy Claw Arcade was open at the end of 2025. The system had one company-owned arcade at the end of 2024 and four at the end of 2025. Three franchise agreements had been signed in Ohio, with three franchised openings projected for 2026.
Two arcades
How much does a Fantasy Claw Arcade franchise make?
| Line | Fashion Show | % of sales | Planet Hollywood | % of sales |
|---|---|---|---|---|
| Total sales | $1,137,751 | 100.0% | $404,472 | 100.0% |
| Cost of goods sold | $296,550 | 26.1% | $86,281 | 21.3% |
| Store-level salary (shared general manager) | $58,343 | 5.1% | $15,854 | 3.9% |
| Total payroll and related | $227,509 | 20.0% | $87,668 | 21.7% |
| Total prime cost | $524,060 | 46.1% | $173,949 | 43.0% |
| Total operating expense | $100,588 | 8.8% | $54,452 | 13.5% |
| Total rent | $109,758 | 9.6% | $98,781 | 24.4% |
| Royalty fee (6%) | $68,128 | 6.0% | $24,268 | 6.0% |
| National marketing fees | $22,709 | 2.0% | $8,089 | 2.0% |
| Total non-controllable expense | $221,915 | 19.5% | $133,047 | 32.9% |
| EBITDA | $291,189 | 25.6% | $43,025 | 10.6% |
Actual unaudited results as the brand reported them. Planet Hollywood opened on 9 May 2025, so its column is part of a year. Sales are net of taxes and tips, and one-time startup costs are excluded. The store-level salary is the general manager’s, shared across the Las Vegas arcades and allocated to each. Store-level bonus and local cooperative fees were $0 at both.
Item 19 reports a 2025 profit and loss statement for two Las Vegas arcades owned by the franchisor’s affiliates. Fashion Show sold $1,137,751 and reported EBITDA of $291,189, 25.6% of sales. Planet Hollywood sold $404,472 from its 9 May opening and reported EBITDA of $43,025, 10.6%.
No franchised arcade is in these figures. The system had no franchised arcades open at the end of 2025, so Item 19 describes arcades run by the franchisor’s own group. The FDD states the arcades are substantially similar to those offered for franchise.
EBITDA here is after a 6% royalty and a 2% marketing fee, and before interest, taxes, depreciation and amortization. Non-controllable expense also includes, at some arcades, personal property tax, utilities and accounting fees: $21,320 at Fashion Show and $1,909 at Planet Hollywood beyond rent, royalty and marketing*.
The Item 19 text has three inconsistencies. The opening paragraph refers to the 2024 calendar year while both columns are labelled 2025. Note 10 refers to “all ten (10) locations” while Item 20 counts four company-owned arcades. The preamble describes dine-in, carryout and delivery service, which does not match an arcade.
Line by line
Fashion Show and Planet Hollywood, line by line
| Line | Fashion Show | Planet Hollywood | Difference |
|---|---|---|---|
| Cost of goods sold | 26.1% | 21.3% | −4.73 points* |
| Total payroll and related | 20.0% | 21.7% | +1.68 points* |
| Total prime cost | 46.1% | 43.0% | −3.05 points* |
| Total operating expense | 8.8% | 13.5% | +4.62 points* |
| Total rent | 9.6% | 24.4% | +14.78 points* |
| EBITDA | 25.6% | 10.6% | −14.96 points* |
Differences are Averan calculations from the dollar figures, each line divided by that arcade’s own sales, Planet Hollywood minus Fashion Show.
Item 19 does not split arcades into bands or quartiles; it shows two arcades side by side. One was open all year and one from 9 May 2025.
Planet Hollywood’s rent was 14.78 points of sales higher than Fashion Show’s, and its EBITDA was 14.96 points lower*. In dollars, Planet Hollywood’s rent of $98,781 was 90.0% of Fashion Show’s $109,758* on 35.6% of its sales*.
Planet Hollywood’s cost of goods and prime cost were lower as a share of sales. Cost of goods was 21.3% against 26.1%, and prime cost 43.0% against 46.1%. Its operating expense was higher, 13.5% against 8.8%.
Per day, Fashion Show sold $3,117 and Planet Hollywood $1,707*. These divide 2025 sales by 365 days and by the 237 days from 9 May to 31 December. On the same basis rent was $301 a day at Fashion Show and $417 at Planet Hollywood*; the FDD does not say whether Planet Hollywood’s rent includes any period before it opened.
Brand charges
Brand charges
| Charge | Rate or amount | Charged now | A year at $1,137,751 |
|---|---|---|---|
| Royalty fee | 7% of monthly gross sales (6% under a development agreement for 3 or more arcades) | 7% | $79,643* |
| Marketing fund | Up to 4% of monthly gross sales | 2% | $22,755* |
| Technology fee | 1% of gross sales | Not charged; may start on 30 days’ notice | $0 |
| Cooperative advertising | Up to 2% of monthly gross sales | Not charged; no cooperative established | $0 |
| POS system | $134 a month, paid to the supplier | $134 a month | $1,608* |
| Total | $104,006 (9.14%)* |
Royalties are payable daily and may be pulled by ACH through the POS system. After the launch marketing plan ends, an owner must also spend at least 1.5% of monthly gross sales on local marketing (the FDD recommends up to 4%); this is spent locally and is outside the total. The FDD sets no minimum royalty.
An owner of one or two arcades pays a 7% royalty and, currently, a 2% marketing fund contribution. On Fashion Show’s 2025 sales those and the POS system come to $104,006, or 9.14% of sales*.
The Franchise Agreement allows these charges to reach 14% of gross sales. That is a 7% royalty, a 4% marketing fund, a 1% technology fee and a 2% cooperative*. At 14%, Fashion Show’s 2025 EBITDA would have been $222,924, 19.6% of sales, and Planet Hollywood’s $18,757, 4.6%*.
The Item 19 figures use a 6% royalty, the rate for a developer of three or more arcades. A developer who does not open at least three arcades can be moved to 7% on all its agreements.
Other charges are set in dollars. They include a $10,000 renewal fee, a transfer fee of the greater of $10,000 or 5% of the sale price up to $20,000, a $5,000 relocation fee and a $500 lease review fee.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $40,000 | $40,000 |
| Development services fee | $10,000 | $10,000 |
| Furniture, fixtures and equipment | $90,000 | $120,000 |
| Leasehold improvements | $15,000 | $90,000 |
| Opening inventory | $40,000 | $55,000 |
| Arcade launch marketing plan | $30,000 | $30,000 |
| Rent | $11,250 | $30,000 |
| Lease and utility security deposits | $3,000 | $30,000 |
| Additional funds, 3 months | $20,500 | $22,950 |
| Other lines | $32,300 | $87,000 |
| Total | $292,050 | $514,950 |
The FDD’s total is labelled as excluding property purchase and lease costs, though the table includes a rent line. Other lines (architecture and project management, professional services, permits, decor, signage, menu boards, POS, training, mock operations and insurance) are summed by Averan. The cover states $80,000 of the total is paid to the franchisor or its affiliates.
The 2026 FDD estimates $292,050 to $514,950 to open one traditional arcade. Equipment is the largest line at $90,000 to $120,000. An arcade occupies about 1,000 to 2,500 square feet, typically in an in-line shopping center.
The launch marketing plan is at least $30,000. Of that, $20,000 is paid to the franchisor in two $10,000 installments, four weeks before and within ten weeks after opening, and $10,000 is spent by the owner. An arcade in a non-traditional venue spends at least $10,000.
A development agreement for three arcades costs $302,050 to $524,950 for the first arcade. This includes a $50,000 development fee. The FDD estimates six to twelve months from signing to opening, and an arcade must open within twelve months.
A single-arcade franchise has no exclusive territory. The franchisor and its affiliates may own or license other arcades at any location other than the owner’s premises.
Locations
Locations, 2024 to 2025
| Type | Start of 2024 | End of 2024 | End of 2025 |
|---|---|---|---|
| Franchised | 0 | 0 | 0 |
| Company-owned | 0 | 1 | 4 |
| All | 0 | 1 | 4 |
The franchisor was formed on 21 February 2024, so Item 20 covers 2024 and 2025 and not 2023. Table 4’s Nevada row shows 2 openings and 3 arcades at the end of 2025, while its total row shows 3 and 4; Table 1 shows 4.
Fantasy Claw Arcade had four company-owned arcades and no franchised arcades at the end of 2025. One opened in 2024 and three in 2025. No arcade closed, transferred or was sold to a franchisee.
Three franchise agreements were signed but not open at the end of 2025, all in Ohio. Exhibit F lists one franchisee, for a Columbus territory. The FDD projects three franchised openings in Ohio and two company-owned openings in Nevada in 2026.
The franchisor’s audited statements show a 2025 net loss of $98,630 and total assets of $109,437 at the end of 2025. Its 2025 revenue was $132,585 of royalties and marketing fees from related parties.
Questions we get asked
Questions owners ask
How much does it cost to open a Fantasy Claw Arcade franchise?
The 2026 FDD estimates $292,050 to $514,950 for a traditional arcade. That includes the $40,000 franchise fee, a $10,000 development services fee, $90,000 to $120,000 of equipment and at least $30,000 of launch marketing. Under a development agreement for three arcades, the first costs $302,050 to $524,950.
What fees does Fantasy Claw Arcade charge?
A 7% royalty for an owner of one or two arcades, or 6% under a development agreement for three or more, and a marketing fund of currently 2% of gross sales that can rise to 4%. A 1% technology fee and a cooperative of up to 2% are allowed but not currently charged. Owners must also spend at least 1.5% of sales on local marketing.
How much does a Fantasy Claw Arcade make?
Item 19 covers two arcades owned by the franchisor’s affiliates. Fashion Show sold $1,137,751 in 2025 with EBITDA of $291,189, 25.6% of sales. Planet Hollywood, open from 9 May, sold $404,472 with EBITDA of $43,025, 10.6%. The figures are unaudited.
Are any franchised arcades included in Item 19?
No. No franchised arcade was open at the end of 2025, so both arcades in Item 19 belong to the franchisor’s affiliates. Their royalty line uses the 6% developer rate; at 7%, Fashion Show’s EBITDA would be $279,811.
What does rent come to at the two arcades?
Total rent was $109,758, 9.6% of sales, at Fashion Show and $98,781, 24.4% of sales, at Planet Hollywood. Rent here includes base rent, common area maintenance, property tax, insurance and, at some sites, a sign fee.
How many Fantasy Claw Arcade locations are there?
Four company-owned arcades and no franchised arcades at the end of 2025, up from one at the end of 2024. Three franchise agreements had been signed in Ohio but were not yet open.
Questions worth putting to Fantasy Claw Arcade
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Fantasy Claw Arcade see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Fantasy Claw Arcade locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for a Fantasy Claw Arcade owner
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Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Fantasy Claw Arcade Franchise LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Fantasy Claw Arcade is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Fantasy Claw Arcade Franchise LLC, 2026 Franchise Disclosure Document, issued 26 March 2026.